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Visa trial of international trade: evidence from support vector machines and neural networks

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  • Engin Akman
  • Abdullah S. Karaman
  • Cemil Kuzey

Abstract

International trade depends on networking, interaction and in-person meetings which stimulate cross-border travels. The countries are seeking policies to encourage inbound mobility to support bilateral trade, tourism, and foreign direct investments. Some nations have been implementing liberal visa regimes as an important part of facilitating policies in view of security concerns. Turkey has been among the nations introducing liberal visa policies to support trade in the last decade and recorded significant increases in the volumes of exports. In this paper, we employed machine learning methodologies, Support vector machines (SVM) and Neural networks (NN), to investigate the facilitating impact of liberal visa policies on bilateral trade, using the export data from Turkey for the period of 2000–2014. The research disentangled the variables that have the strongest impact on trade utilizing SVM and NN models and exhibited that visa policies have significant impacts on the bilateral trade. More relaxed visa policies are recommended for the countries in the pursuit of increasing exports.

Suggested Citation

  • Engin Akman & Abdullah S. Karaman & Cemil Kuzey, 2020. "Visa trial of international trade: evidence from support vector machines and neural networks," Journal of Management Analytics, Taylor & Francis Journals, vol. 7(2), pages 231-252, April.
  • Handle: RePEc:taf:tjmaxx:v:7:y:2020:i:2:p:231-252
    DOI: 10.1080/23270012.2020.1731719
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    Cited by:

    1. Huishuang Su & Xintong Qu & Shuo Tian & Qiang Ma & Ling Li & Yong Chen, 2022. "Artificial intelligence empowerment: The impact of research and development investment on green radical innovation in high‐tech enterprises," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 489-502, May.
    2. Xueling Li & Yujie Long & Meixi Fan & Yong Chen, 2022. "Drilling down artificial intelligence in entrepreneurial management: A bibliometric perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 379-396, May.
    3. Simon Blöthner & Mario Larch, 2022. "Economic determinants of regional trade agreements revisited using machine learning," Empirical Economics, Springer, vol. 63(4), pages 1771-1807, October.

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